Stewart Information Services delivered Q4 results that exceeded Wall Street expectations, with management attributing the positive performance to a surge in commercial activity and resilient agency services. CEO Frederick Eppinger noted that the company grew revenues across all business lines, despite a protracted slump in existing home sales. Eppinger highlighted, “We grew national commercial services business unit by 49% in the quarter,” pointing to gains across multiple asset classes and improved underwriting capabilities. The recent acquisition of Mortgage Contracting Services rounded out the lender services portfolio, positioning Stewart for ongoing market share gains.
Is now the time to buy STC? Find out in our full research report (it’s free for active Edge members).
Stewart Information Services (STC) Q4 CY2025 Highlights:
- Revenue: $794.5 million vs analyst estimates of $774.9 million (19.6% year-on-year growth, 2.5% beat)
- Adjusted EPS: $1.65 vs analyst estimates of $1.35 (21.9% beat)
- Market Capitalization: $2.17 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Stewart Information Services’s Q4 Earnings Call
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Bose George (KBW) asked about commercial revenue growth prospects and seasonality. CEO Frederick Eppinger explained that while commercial growth will likely moderate from the unusually high Q4 level, he expects continued strength and a gradual increase in market share.
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Geoffrey Dunn (Dowling & Partners) questioned plans for the expanded credit facility. CFO David Hisey replied that the additional flexibility is intended for opportunistic acquisitions and will be managed to align with equity growth rather than aggressive paydown.
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Dunn (Dowling & Partners) also probed on the impact of AI and digitization. Eppinger described numerous AI initiatives aimed at improving efficiency and quality, emphasizing incremental improvements rather than transformational change.
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Oscar Nieves Santana (Stephens) asked about the outlook for the housing market and regional trends. Eppinger noted cautious optimism for modest improvement, with growth expected to be broad-based but varying by region.
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Santana (Stephens) inquired about the impact of Texas title premium rate reductions. Eppinger stated the effect would be a low single-digit drag on earnings, mitigated by fee adjustments and cost controls.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be closely watching (1) progress toward increasing commercial market share and executing targeted acquisitions, (2) further margin improvements from operational scale and technology investments, and (3) signs of a sustained recovery in existing home sales volumes. How Stewart integrates new assets like Mortgage Contracting Services and manages evolving regulatory headwinds will also be important markers of execution.
Stewart Information Services currently trades at $70.93, up from $68.86 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).
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